** Shares of mortgage lenders rise on Fri as traders boost bets on an interest rate cut after dovish comments by New York Fed President John Williams, a voting member of the Federal Open Market Committee

** LoanDepot LDI.N jumps ~7%, Rocket Companies RKT.N surges nearly 7%, PennyMac Financial Services PFSI.N up ~3%, UWM Holdings UWMC.N up 5%

** Markets pricing in nearly 75% chance for a 25 basis point reduction at the Fed's next meeting in Dec, up from around 37% earlier in the day, according to the CME FedWatch Tool

** In recent years, mortgage lenders have grappled with sharp declines in origination volumes due to higher interest rates

** Rate cuts could potentially attract more buyers into the market, and make loans and mortgages less expensive for consumers

** Also, shares of online home-listings firm Zillow Group ZG.O rally 6.5% on Fri, and online residential real estate firm Opendoor Technologies OPEN.O leaps ~9%

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))